Helio
Encyclopedia
Helio was a Mobile virtual network operator (MVNO)
wireless carrier launched on May 2, 2006. It was founded by EarthLink
founder Sky Dayton
. It was a joint venture between SK Telecom
(a South Korean CDMA mobile telecom) and EarthLink
. Helio had 170,000 subscribers at the time of its acquisition by Virgin Mobile USA
in 2008, which in turn was acquired by Sprint-Nextel on November 24.
On January 26, 2005, EarthLink and SK Telecom announced to the media that they had entered into agreement to launch a new US mobile provider. This provider would operate as a mobile virtual network operator
and would lease network capacity from Sprint
. The premise of this new company would be to grow SK Telecom's customer base from its already saturated home market of South Korea
to the US wireless market. SK Telecom has been under increasing pressure over the last few years due to its flat growth in its existing markets. Helio, as it was to be called, attempted to market itself to the younger demographic, trying to tout itself using the latest in cutting-edge handset technology. They planned to avoid taking on the major US wireless carriers directly, and instead they intended to carve out a niche for themselves with technology-savvy consumers. EarthLink and SK Telecom agreed to provide an initial round of financing totaling $440 million US dollars, with each of the two owning 50% of the new company.
s and in the print media, specifically in magazines that serve the 18-32 demographic, and very heavily on MySpace. Helio opened five corporate flagship stores, with locations in Cherry Creek
-Colorado, New York City
-New York, and in Palo Alto, San Diego and Santa Monica
-California.
Startup costs for Helio turned out to be millions of USD a month, eventually causing EarthLink to post a loss for its first quarter of 2007. After it became clear that more money would be required both EarthLink and SK Telecom upped their initial investment. After this second round of financing ran out, EarthLink declined to provide further money to support Helio. On September 21, 2007 EarthLink announced that SK Telecom would be increasing their investment in Helio by $270 million and they would be adjusting ownership positions in the company accordingly, effectively giving operational control to SK Telecom.
On February 16, 2006 and in conjunction with its initial handset lineup, Helio announced it had partnered with MySpace
. Helio created a custom portal for users to interface with the social networking site. Cingular, AT&T, Sprint and others followed suit months later.
In August 2007, one of Helio's two investors, EarthLink, refused to provide additional capital to the company stating at the time that the investments were draining resources away from the company's core business. In January 2008, CEO Sky Dayton was replaced by Dr. WonHee Sull, a former executive of SK Telecom. Sky was named non-executive chairman of the board. In a press release, SK Telecom reaffirmed their commitment to Helio.
over a possible merger. SK Telecom denied these rumors, but Virgin divulged that the two, in fact, were having preliminary discussions. On June 27, 2008, Virgin Mobile announced that it would pay $39 million in stock for Helio after SK Telecom promised to invest $25 million in cash immediately in Virgin. On September 9, 2008 Virgin Mobile USA announced "Helio by Virgin Mobile," tagged with the line "Plan To Have It All" the initiation of the acquisition, also a change of monthly plans and they announced their first integrated phone the PCD "Shuttle".
As of February 2010, Helio phones no longer appear on the Virgin Mobile USA web site. On March 5, 2010, Sprint confirmed that Virgin Mobile Postpaid Customers, a euphemism for Helio customers, would have to switch to Sprint or another carrier by May 25, 2010, because Helio cell phones will no longer work after that date.
in the South Korean market. As such, almost all of Helio's handsets were rebranded versions of Samsung phones long since on the South Korean market. Helio has been criticized for not having the latest South Korean phones as it marketing implied, opting instead to use older models with features and abilities on par with offerings from other American carriers at the time. Helios was awarded US Patents for user interface design directed by Matias Duarte
. At launch, Helio offered two models called the Kickflip
and Hero. These were replaced by the Drift
slider, which was added to the line-up in November 2006, and the Heat
slider, which was added in March 2007. In May 2007, Helio introduced the Ocean
, its flagship dual-slider. In August 2007, Helio launched Fin, an ultra-thin folder with a magnesium body. In December 2007, the Mysto slider saw a limited release to the Korean American market, which was followed up by a general market launch in January 2008. On February 12, 2009, Helio launched sales of the Ocean 2 by Virgin Mobile. The device is much like the original Ocean but a bit sleeker and new features.
which provided wireless internet access via Helio's 3G technology and Wi-Fi hot spots. The Hybrid is a rebranded Sierra AirCard.
Mobile virtual network operator
A mobile virtual network operator is a company that provides mobile phone services but does not have its own licensed frequency allocation of radio spectrum, nor does it necessarily have all of the infrastructure required to provide mobile telephone service...
wireless carrier launched on May 2, 2006. It was founded by EarthLink
EarthLink
EarthLink , is an Internet service provider headquartered in Atlanta, Georgia, USA. It claims 1.94 million subscribers.- Business :EarthLink provides a variety of Internet connection types, including dial-up, DSL, satellite, and cable. Both dial-up and high speed Internet access are available...
founder Sky Dayton
Sky Dayton
Sky Dylan Dayton is an American entrepreneur.Dayton is the founder of EarthLink, co-founder of eCompanies, founder and chairman of Boingo.-Early life:...
. It was a joint venture between SK Telecom
SK Telecom
SK Telecom Co., Ltd. or Sunkyoung Telecom is a South Korean wireless telecommunications operator, controlled by the SK Group, one of the country's largest chaebol. As a part of SK Group, SK stands for Sun Kyung.SK Telecom is a provider of mobile service in Korea, with 50.5% of the market share as...
(a South Korean CDMA mobile telecom) and EarthLink
EarthLink
EarthLink , is an Internet service provider headquartered in Atlanta, Georgia, USA. It claims 1.94 million subscribers.- Business :EarthLink provides a variety of Internet connection types, including dial-up, DSL, satellite, and cable. Both dial-up and high speed Internet access are available...
. Helio had 170,000 subscribers at the time of its acquisition by Virgin Mobile USA
Virgin Mobile USA
Virgin Mobile USA, Inc. is a wireless communications services provider based in Warren, New Jersey, United States. Founded in 2001 as a mobile virtual network operator, Virgin Mobile USA, Inc. commenced operations under the Virgin Mobile brand in June, 2002...
in 2008, which in turn was acquired by Sprint-Nextel on November 24.
On January 26, 2005, EarthLink and SK Telecom announced to the media that they had entered into agreement to launch a new US mobile provider. This provider would operate as a mobile virtual network operator
Mobile virtual network operator
A mobile virtual network operator is a company that provides mobile phone services but does not have its own licensed frequency allocation of radio spectrum, nor does it necessarily have all of the infrastructure required to provide mobile telephone service...
and would lease network capacity from Sprint
Sprint Nextel
Sprint Nextel Corporation is an American telecommunications company based in Overland Park, Kansas. The company owns and operates Sprint, the third largest wireless telecommunications network in the United States, with 53.4 million customers, behind Verizon Wireless and AT&T Mobility...
. The premise of this new company would be to grow SK Telecom's customer base from its already saturated home market of South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...
to the US wireless market. SK Telecom has been under increasing pressure over the last few years due to its flat growth in its existing markets. Helio, as it was to be called, attempted to market itself to the younger demographic, trying to tout itself using the latest in cutting-edge handset technology. They planned to avoid taking on the major US wireless carriers directly, and instead they intended to carve out a niche for themselves with technology-savvy consumers. EarthLink and SK Telecom agreed to provide an initial round of financing totaling $440 million US dollars, with each of the two owning 50% of the new company.
History
When Helio first opened its doors for business in May 2005, they opted for a soft launch. Most of the promotion was done by word of mouth and promotional events across the country. On July 13, 2006, Helio began running TV commercials with the slogan, "Don't Call Us a Phone Company; Don't Call it a Phone." Alongside the television commercials, Helio also began advertising on billboardBillboard (advertising)
A billboard is a large outdoor advertising structure , typically found in high traffic areas such as alongside busy roads. Billboards present large advertisements to passing pedestrians and drivers...
s and in the print media, specifically in magazines that serve the 18-32 demographic, and very heavily on MySpace. Helio opened five corporate flagship stores, with locations in Cherry Creek
Cherry Creek
Cherry Creek may refer to a location in the United States:*Cherry Creek , a stream in California*Cherry Creek , a tributary of the South Platte River*Cherry Creek, Denver, Colorado, a neighborhood**Cherry Creek Shopping Center...
-Colorado, New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...
-New York, and in Palo Alto, San Diego and Santa Monica
Santa Mônica
Santa Mônica is a town and municipality in the state of Paraná in the Southern Region of Brazil.-References:...
-California.
Startup costs for Helio turned out to be millions of USD a month, eventually causing EarthLink to post a loss for its first quarter of 2007. After it became clear that more money would be required both EarthLink and SK Telecom upped their initial investment. After this second round of financing ran out, EarthLink declined to provide further money to support Helio. On September 21, 2007 EarthLink announced that SK Telecom would be increasing their investment in Helio by $270 million and they would be adjusting ownership positions in the company accordingly, effectively giving operational control to SK Telecom.
On February 16, 2006 and in conjunction with its initial handset lineup, Helio announced it had partnered with MySpace
MySpace
Myspace is a social networking service owned by Specific Media LLC and pop star Justin Timberlake. Myspace launched in August 2003 and is headquartered in Beverly Hills, California. In August 2011, Myspace had 33.1 million unique U.S. visitors....
. Helio created a custom portal for users to interface with the social networking site. Cingular, AT&T, Sprint and others followed suit months later.
In August 2007, one of Helio's two investors, EarthLink, refused to provide additional capital to the company stating at the time that the investments were draining resources away from the company's core business. In January 2008, CEO Sky Dayton was replaced by Dr. WonHee Sull, a former executive of SK Telecom. Sky was named non-executive chairman of the board. In a press release, SK Telecom reaffirmed their commitment to Helio.
Acquisition by Virgin Mobile USA
In May 2008, rumors arose that Helio parent SK Telecom was in talks with Virgin Mobile USAVirgin Mobile USA
Virgin Mobile USA, Inc. is a wireless communications services provider based in Warren, New Jersey, United States. Founded in 2001 as a mobile virtual network operator, Virgin Mobile USA, Inc. commenced operations under the Virgin Mobile brand in June, 2002...
over a possible merger. SK Telecom denied these rumors, but Virgin divulged that the two, in fact, were having preliminary discussions. On June 27, 2008, Virgin Mobile announced that it would pay $39 million in stock for Helio after SK Telecom promised to invest $25 million in cash immediately in Virgin. On September 9, 2008 Virgin Mobile USA announced "Helio by Virgin Mobile," tagged with the line "Plan To Have It All" the initiation of the acquisition, also a change of monthly plans and they announced their first integrated phone the PCD "Shuttle".
As of February 2010, Helio phones no longer appear on the Virgin Mobile USA web site. On March 5, 2010, Sprint confirmed that Virgin Mobile Postpaid Customers, a euphemism for Helio customers, would have to switch to Sprint or another carrier by May 25, 2010, because Helio cell phones will no longer work after that date.
Devices
Helio leased network capacity primarily from Sprint Nextel using the CDMA 1xEVDO standard. This is also the standard used by SK TelecomSK Telecom
SK Telecom Co., Ltd. or Sunkyoung Telecom is a South Korean wireless telecommunications operator, controlled by the SK Group, one of the country's largest chaebol. As a part of SK Group, SK stands for Sun Kyung.SK Telecom is a provider of mobile service in Korea, with 50.5% of the market share as...
in the South Korean market. As such, almost all of Helio's handsets were rebranded versions of Samsung phones long since on the South Korean market. Helio has been criticized for not having the latest South Korean phones as it marketing implied, opting instead to use older models with features and abilities on par with offerings from other American carriers at the time. Helios was awarded US Patents for user interface design directed by Matias Duarte
Matias Duarte
Matias Duarte is a Chilean-American computer interface designer, and currently the Director of Android operating system User Experience at Google where Android 3.0, was the first release with a major element of his design influence....
. At launch, Helio offered two models called the Kickflip
Helio Kickflip
The Kickflip, produced by VK Mobile, was one of Helio's two launch devices and was marketed heavily to MySpace users. The Kickflip is a swiveling cell phone, white in color and with a flat front. Some of the features included 2 Megapixel camera, 90 minutes of video recording, side buttons, QVGA...
and Hero. These were replaced by the Drift
Samsung SPH-a503
The Samsung SPH-a503, known as The Drift, is a slider multimedia wireless mobile device, which comes in black or white. It is sold by Helio, a joint venture between Earthlink and SK Telecom . The Drift is the first to have Location Based Services bundled with the device...
slider, which was added to the line-up in November 2006, and the Heat
Samsung SPH-A303
The Samsung-a303, known as The Heat, is a slider multimedia wireless mobile device, which comes in Gold or Onyx . It is sold by Helio, a joint venture between Earthlink and SK Telecom...
slider, which was added in March 2007. In May 2007, Helio introduced the Ocean
Helio Ocean
The Helio Ocean is a dual slider Internet-enabled multimedia wireless mobile device sold by mobile virtual network operator wireless carrier Helio, and manufactured by Pantech Curitel. A distinctive design feature of the Ocean is its dual sliding mechanism — when slid down in the vertical...
, its flagship dual-slider. In August 2007, Helio launched Fin, an ultra-thin folder with a magnesium body. In December 2007, the Mysto slider saw a limited release to the Korean American market, which was followed up by a general market launch in January 2008. On February 12, 2009, Helio launched sales of the Ocean 2 by Virgin Mobile. The device is much like the original Ocean but a bit sleeker and new features.
Hybrid
The Hybrid was a PC cardPC card
In computing, PC Card is the form factor of a peripheral interface designed for laptop computers. The PC Card standard was defined and developed by the Personal Computer Memory Card International Association which itself was created by a number of computer industry companies in the United States...
which provided wireless internet access via Helio's 3G technology and Wi-Fi hot spots. The Hybrid is a rebranded Sierra AirCard.